Medical Bills Sent to Collection Agency Making Threats – Settle Debt or Pay What I can Afford?
A few years back, I had a hernia surgery. My parents paid for part of the procedure, and the hospital was able to cover the cost of the operating room with their indigent fund. However, a previous E.R. visit generated a bill for a little over $600.
I have been getting a lot of these calls regarding it, with a recording "Is this" (different voice) "John C.." (different voice) "If so, press one". I had gotten some previously, and stayed on the line long enough to explain that I had been working on creative projects and doing odd jobs, and I had no significant assets. Then, the debt got passed to a Franklin Collection Agency. The guy sounded friendly enough, but he says that if I just start paying what I'd prefer to, the debt will go to their legal department, and I'd have to pay an additional $200 in court costs.
Allowing the case to go forward isn't completely out of the question, since a wage garnishment would affect me only when things were going well enough to have a wage (they are also helping me get some dental work done); but I'd prefer to pay e.g. $50/month. They say that if I don't give them an account with automatic withdrawal, and agree to give them ~$164, or pay ~$219 with a non-automatic withdrawal account, that it will not prevent them from sending me a summons, and, the fellow said, "Frankly, I don't know why you haven't gotten one already."
I may be able to scrape one of these amounts together, but I'd really like some advice on if the guy with Franklin is telling it straight, and what are the pros and cons of either 1) paying it like they want, 2) just paying, say $50/month anyway, or 3) not paying it. It seemed like a last-minute ambush for money TODAY, but maybe or maybe not how they are proceeding is normal, and I should just cough up badly needed money. He says "the bank" is unwilling to accept a settlement.
Should I go to court, can I get a public defender, and are my odds good at getting a 60% settlement?
What do I do about medical debt and the collection agency saying summons is overdue?
—John C.
When a debt collector tells you that your being sued is long overdue, take it with a grain of salt. It is not that they cannot or will not sue. I would need a whole lot more information in order to offer feedback about the risk of that happening to you. But collectors are trained to press your emotional and stress buttons in order to get paid. Making reference to being sued is rather effective.
Settling medical debt is often different than negotiation credit card bills that went unpaid.
You mentioned he said “the bank” and used quotes. The debt collector you spoke with probably also collects on bank debts, not just medical bills. I would not read too much into that other than, here is an example of a guy following his script and routine in order to get some form of payment – which accents my point about his reference to a summons being over due.
Negotiating a lower payoff and settling medical debt is often done at higher rates. In other words, you do not save as much. The lower the medical debt, the more the principles I laid out in this article apply: https://consumerrecoverynetwork.com/credit-card-debt-to-include-in-settlement-plan
If you are unable to make payments as high as the debt collector is requesting; if sending smaller payments (that are not agreed to in advance) does not prevent a summons; if you already are preparing yourself mentally and financially to settle at 60% – Save up the money as fast as you are able and settle the medical bill rather than make payments.
I think you can settle this for close to 60%. When you are ready with the money, come back and review the debt settlement section of our fee online debt relief system. Post questions on this page and get feedback.
About Michael BoveeMichael started CRN in 2004 with a mission to provide people in need with detailed debt and credit help and education. Michael has participated as an expert panelist in federal consumer protection rule making, collaborated on state law changes governing debt consolidation, has worked as an expert witness in court matters related to the debt relief industry, and is a regular contributor to several personal finance websites.
I received a summons for unpaid medical bills. The attorney told me I will accrue interest at 9% in NY until the debt is paid. Can they charge interest?
Courts can approve interest on judgements. The amount is capped by law in most states.
Being sued by attorney hired by hospital even though I’m sending the attorney payments every month. What, if any, are my options?
What is the balance owed? How much were you sending in each month and for how long? When were you served? How much money can you pull together to offer as a settlement?
Hey Michael I am having seizures and that I have to go to the hospital a
a few times and they charged me a out standing bill that I tried to send
10:00 dollars a month and I have other bills and doctors to go and by
Medication and rent and food and I am on disability can the hospital
take that !!
Your disability is protected. Check out this article for more about state law protections from creditors.
Hi Michael,
My daughter has no medical insurance, and she was hit by a truck while riding her bicycle home from work one evening. The man took off before any information was exchanged. He hit her hard enough that he knocked her out of her shoes. To make a long story short, she wound up haveing a broken hand that required surgery. She had to have pins put in and the whole healing process took about 2-3 months. She was able to get a non-profit organization to help with the cost of the surgery, however, she had a few medical bills that did not get paid. A couple of them are working with her on payments, but a few of them will not even budge on what they want from her as far as a payment. My question is can they refuse to take any payment as long as one is trying to get made, and can they turn her over to collection even though she is making said payment?
They can refuse payment arrangements, and medical bills are regularly turned over to collections even when you are sending in what you can.
There are situations where it is easier to work with a debt collector than the billing company or office.
I have had 800+ credit scores my whole adult life (age64). I pay my bills and am lucky to have great employer health insurance.
Yesterday out of the blue, I get a letter from Phoenix Financial Credit saying they are collecting for a 2013 ER visit to a FL hospital in the amount of $ 1,200.
I called Cigna (their online records don’t go back that far). Cigna has records of paying the hospital a lot of money for that ER visit. I had a $100 copay. When talking with Cigna the name on the bill is slightly different from the Hospital name and she wondered if it is a separate ER group practice that turned this over to collection. Again, I NEVER SAW A BILL FOR THIS BEFORE and NEITHER HAS CIGNA….4 years ago!
Cigna said they’ll send me the EOB for that ER visit but IF it’s a separate entity that did not send them a bill in a timely manner, they won’t pay it now. I asked Cigna if I should contact the Hospital or the collection agency but she advised to just send them the EOB that they are sending me back to them with their dunning letter.
I’m a nut about my good credit and seeing today that this is on my Credit Report is stressing me out.
IF this ‘entity’ had billed Cigna timely (they had my insurance card).. Cigna would have paid it, other than my $50 copay.
How should I proceed…just send them the EOB as Cigna suggests?? Or should I go over to the Hospital and talk to them (though if this is a separate ER practice, I doubt they have billing people there)?
I would follow the advice from Cigna if it were me, and see where things go from there. POst an update, and if you still need to address the bill and the credit reporting, I will suggest filing a debt collection complaint with the CFPB and some other options too.
Thanks…I will keep you posted.
Here’s an update. I did some googling and found that in FL it has been illegal since 2000 for medical providers (and their billing agents) to bill HMO subscribers for balance billing. And since 2016, it’s illegal to bill PPO subscribers for balance billing. I contacted the FL Office of Financial Regulation and they confirmed this. I faxed (and mailed) this info to the collection agency and will let you know their response. I also filed a complaint against Phoenix Financial with the same regulatory board.
I have a hospital that is trying to sue me for a bill i am unaware of from 2008. They said if i was working they would garnish my wages. And since im not and im married they can take my husbands ssi and his truck.. Is this true? His ssi is what we live off of. And his truck he had it before we got married.
Who is the collection agency threatening you?
Hello Michael,
I have a charge off from almost three years ago with ARS. It is a medical debt and I am trying to rebuild my credit. The total is $596.00 and I a wondering what your advice would be.
Thank you in advance,
Jud Hoffman
Call and negotiate a lower pay off. Get them to send you the deal in writing before you pay it.
My son, 34, lives in Colorado. Recently, he was served with a Summons on a 5-year old medical bill.. It was served on him by a collection agency. His court date is February 9th.
We called the hospital, where he was seen, to see if his Medicaid was in place then, or if the hospital could help him apply for the Colorado Indigent Care Program (CICP).
Medicaid confirms that he was not covered, and say they can do nothing else.
I spoke to Big Thompson ER Physicians, the original debtor, to see if they knew where my son could get some help paying this bill The guy wasn’t very nice, and I quickly deduced that I was wasting my time.
I called the collection agency, Wakefield & Associates, and talked to them to see if they knew where he might get help They were nice, but they asked if my son could pay the bill, and gave me a final amount if he paid the bill in full right then. The bill was $300.00 more than the bill I am holding in my hand is.
I even called 211, The Salvation Army. They searched their database, but couldn’t find any help for my son, in our county.
Lastly, I called and left a message at the finance office of our local hospital, instead of their corporate office. I’m waiting to hear back if they can help us with CICP, or some other form of help.
If we can’t find some help, I guess we’re going to have to go to court. I don’t know what to say, other than to tell the truth — my son is indigent, has no car, no personal property, no bank account, no car, etc. He also does not have a job at the moment. He’s behind on child support and student loans, as well. He moved back in with me because he has no money. So all I can think to say to the judge, is what I just wrote.
Obviously, he has no money for an attorney, either.
Can you help us?
You are doing what you can to get indigent status, and are prepared to go to court. Those are the 2 things I would be doing, along with trying to come up with a way to negotiate a settlement, but that will take money your son does not have. He may be looking at negotiating a settlement on the judgment that may get entered in the court.
What is the total balance owed?
The total balanced owed was $443 from the doctors. Wakefield & Associates now has that amount jacked up to over $700.